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India-Middle East Europe Economic Corridor (IMEC)

Source: The Hindu
GS II: International Relation


Overview

India-Middle East Europe Economic Corridor (IMEC)
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  1. News in Brief
  2. India-Middle East Europe Economic Corridor (IMEC)
  3. Partnership for Global Infrastructure Investment (PGII)

Why in the News?

The conflict in Israel and Palestine will not dampen plans for the India-Middle East Europe Economic Corridor (IMEC), noting that the strife didn’t figure significantly in parleys held with G20 FMs in Marrakech, Morocco.

News in Brief

  • However, violence has brought concerns about fuel and food security to the fore again
  • While higher for longer interest rates can impact investment flows in emerging markets.
  • These economies are the growth engines of the world.
  • So investment flows should not be influenced by high interest rates alone.
India-Middle East Europe Economic Corridor (IMEC)

  • The India-Middle East Europe Corridor (IMEC) is a network of transport corridors.
  • It comprises railway lines and sea lanes to promote economic integration between Asia, the Arabian Gulf, and Europe.
  • The project will involve transit by
    1. Ship between India and Saudi Arabia
    2. Rail link to the UAE
    3. Jordan from where the shipment will move by sea to Turkey
    4. Further by rail.
  • The proposed corridor will comprise of two separate corridors
    1. Eastern corridor: Connect India to the Arabian Gulf 
    2. Northern corridor: Northern Corridor will connect the Arabian Gulf to Europe
  • The IMEC was launched at the recently concluded G20 Summit 2023 in India.
  • Memorandum of Understanding (MoU) was signed between the Governments of India, the US, Saudi Arabia, the European Union (EU), the UAE, France, Germany and Italy to establish this economic Corridor.
  • The project is part of the Partnership for Global Infrastructure Investment (PGII).
    • Its is a collaborative effort by G7 nations.
    • It aims to fund infrastructure projects in developing nations.
    • PGII is part of G7’s vision of a Build-Back-Better framework.
  • What is the significance?
    • The significance of IMEC lies in its geo-political and geo-economic significance.
    • It is an ambitious counter to China’s Belt and Road Initiative (BRI) project
    • It also provides an opportunity to counter China’s growing geopolitical influence in the Middle East region.
    • The corridor will help bring countries in the Middle East together.
    • It will establish that region as a hub for economic activity instead of a region of challenge, conflict or crisis.
Partnership for Global Infrastructure Investment (PGII)
  • The Partnership for Global Infrastructure Investment (PGII) is a collaborative effort by the Group of Seven (G7) nations.
  • Aims to fund infrastructure projects in developing countries through public and private investments.
  • The PGII is seen as a counter to China’s Belt and Road Initiative (BRI).
  • The G7 aims to mobilize up to $600 billion by 2027 to invest in critical infrastructure that improves lives and delivers real gains for all of our people.
  • The PGII is based on the trust principles of the Blue Dot Network.
    • It is a multi-stakeholder initiative that promotes quality infrastructure investment.

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